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Optimal process of urbanization in a developing country dynamic Henry George theorem

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  • Masamichi Kawano

Abstract

Urbanization is going on in China. This paper considers the optimal process of urbanization in a theoretic framework. We already have the Henry George theorem, which asserts that the optimal amount of the public goods should equal the total amount of land rent for the optimal distribution of the population over regions in a country, or optimal population size of each region. This theorem was originally developed in a static framework. We extend this theorem to a dynamic one using overlapping generations model. As the result, we derived that this theorem still holds even in a transient state as well as in the steady state under some types of the utility the production functions. Copyright Springer-Verlag Berlin Heidelberg 2014

Suggested Citation

  • Masamichi Kawano, 2014. "Optimal process of urbanization in a developing country dynamic Henry George theorem," Letters in Spatial and Resource Sciences, Springer, vol. 7(3), pages 195-204, October.
    • Handle: RePEc:spr:lsprsc:v:7:y:2014:i:3:p:195-204
    DOI: 10.1007/s12076-013-0111-x
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    References listed on IDEAS

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    1. Fujita,Masahisa, 1991. "Urban Economic Theory," Cambridge Books, Cambridge University Press, number 9780521396455, September.
    2. Richard Arnott, 2004. "Does the Henry George Theorem Provide a Practical Guide to Optimal City Size?," American Journal of Economics and Sociology, Wiley Blackwell, vol. 63(5), pages 1057-1090, November.
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    4. Flatters, Frank & Henderson, Vernon & Mieszkowski, Peter, 1974. "Public goods, efficiency, and regional fiscal equalization," Journal of Public Economics, Elsevier, vol. 3(2), pages 99-112, May.
    5. Joseph E. Stiglitz, 1977. "The Theory of Local Public Goods," International Economic Association Series, in: Martin S. Feldstein & Robert P. Inman (ed.), The Economics of Public Services, chapter 12, pages 274-333, Palgrave Macmillan.
    6. John M. Hartwick, 1980. "The Henry George Rule, Optimal Population, and Interregional Equity," Canadian Journal of Economics, Canadian Economics Association, vol. 13(4), pages 695-700, November.
    7. Kanemoto, Yoshitsugu & Ohkawara, Toru & Suzuki, Tsutomu, 1996. "Agglomeration Economies and a Test for Optimal City Sizes in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 10(4), pages 379-398, December.
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    Cited by:

    1. Charles Ka Yui Leung & Joe Cho Yiu Ng & Edward Tang, 2020. "Why is the Hong Kong Housing Market Unaffordable? Some Stylized Facts and Estimations," Globalization Institute Working Papers 380, Federal Reserve Bank of Dallas.

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    More about this item

    Keywords

    The Henry George theorem; Public good; Overlapping generations model; Urbanization; O21; R13;
    All these keywords.

    JEL classification:

    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

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